GM Recalls Could Lead to Profits at Some Car Dealerships, Unhappy Customers at Others
This year may see a record number of safety recalls for vehicles, with General Motors recalling 20 million cars in the first six months of 2014.
The reason for the recalls stems from the lowered standards for safety recalls; manufacturers have to recall cars with potential defects for liability purposes. Most recently, GM issued a recall for Chevrolet's 2013-2014 Cruze sedans with Takata air bags, which could fail to inflate in the event of a crash.
However, the news isn't all bad for car dealers, says one expert. After these recalls are issued, dealerships have the opportunity to make money, says Michelle Krebs, a senior analyst at AutoTrader.com.
Although the auto makers cover the cost of repairs resulting from the recall, customers still have to take their cars to a dealer in o...